If you own a home or have ever bought or sold real estate, then you have probably heard of a warranty deed. But what does it mean? And why do we need one? We’re here to answer these questions for you and more!
What is a Warranty Deed?
A warranty deed is a legal document that transfers ownership of real property. It’s used in real estate transactions, and it must be signed by both the buyer and seller.
A warranty deed protects buyers against defects in title–for example, if there is a problem with who owns the house or how much they paid for it–and ensures that they can transfer their interest in the property without any problems later on.
Who Issues a Warranty Deed?
A warranty deed is issued when a person sells or transfers property to another person.
In most cases, the seller of real estate will issue a warranty deed to ensure that all of their rights are transferred to the buyer. If there are any problems with the title–for example if there is an outstanding lien against it or someone else has an interest in owning it–the seller must disclose this information before selling their property so that they won’t be held responsible for any issues later on.
What are the Types of Warranties?
The most common types of warranties are:
- Warranty of title: This warranty protects the buyer from defects in the seller’s title to real property. If there is a defect in this area, it can be discovered during a title search or when you go to sell your home later on.
- Warranty of quiet enjoyment: This warranty protects you from interference with your use and enjoyment of the property. It prevents others from coming onto your land without permission or disturbing you while living there. If someone violates this warranty by trespassing on your property and making noise late at night, they could be sued for violating this part of their contract with you as well as breaking local laws against disturbing neighbors’ peace or privacy (depending upon where they live).
What is an Indemnification Clause?
An indemnification clause is a provision in a contract that requires one party to compensate another party if the first party causes harm.
Example: In a warranty deed, the seller could be required to indemnify the buyer for any damages resulting from defects in title (such as easements), or for any other reason. If there was an indemnification clause in your warranty deed and someone else caused damage while using your property, then they would have to pay you for their actions.
Does a Warranty Deed Transfer Ownership of the Property?
Yes, a warranty deed transfers ownership of the property. A warranty deed is the most common type of deed used to transfer ownership of real property. It’s also called a general warranty deed because it guarantees that all title defects have been cleared up and that you’re buying what you think you’re buying–so long as no one else has any claims on the land in question. If someone does claim ownership rights over your new house, this document will help establish your right to live there without interference from anyone else!
The title of the property is transferred from seller to buyer when they sign this document together at closing (when all parties agree on terms). The buyer gets a clear title and no one else has any claim on his/her new property–except maybe future owners if they sell it again someday! The seller warrants (guarantees) that he or she has good title to this property; otherwise known as “clean hands.”
Don’t overlook this important document that you should have when you buy or sell real property. It’s a good idea to have a lawyer review all documents before signing them, as this will help ensure that everything is in order and there are no mistakes.